Form 4: SKYX Platforms President Disposes Shares for Tax Obligations, Retains Substantial Holdings

SKYX Platforms Corp.'s President, Steven Mark Schmidt, disposed of 5,928 common shares to cover tax withholding related to RSU vesting, while maintaining significant beneficial ownership.

Summary

• Steven Mark Schmidt, President of SKYX Platforms Corp., disposed of 5,928 shares of common stock at a price of $1.2 per share on June 30, 2025.
• This disposition was made to satisfy tax withholding obligations incurred from the vesting of restricted stock units (RSUs).
• Following the transaction, Mr. Schmidt directly beneficially owns 490,348 shares of common stock.
• His beneficial ownership also includes 230,000 Restricted Stock Units (RSUs), with 180,000 vesting in equal quarterly installments of 20,000 beginning September 30, 2025, and the remaining 50,000 vesting on January 1, 2026.
• Mr. Schmidt holds stock options to acquire a total of 450,000 shares of common stock, with exercise prices of $12, $0.9, and $1.09, and various vesting schedules extending through 2029.
• Additionally, he beneficially owns 20,000 shares of Series A-1 Preferred Stock, which has an original issue price of $25.00 per share and is convertible into common stock at an initial conversion price of $2.00 per share (12.5 common shares per preferred share), subject to adjustments and a minimum conversion price of $1.20 per share.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The disposition of shares was a non-discretionary event for tax purposes, not a discretionary sale, which is a routine aspect of executive compensation. The executive retains substantial beneficial ownership, including common stock, RSUs, and stock options, indicating continued alignment with shareholder interests and a long-term commitment to the company.

Positives

• The disposition of shares was for tax withholding purposes related to RSU vesting, which is a non-discretionary and routine event for executive compensation, rather than a discretionary sale.
• The President retains substantial beneficial ownership in SKYX Platforms Corp., including 490,348 common shares, 230,000 RSUs, and options for 450,000 common shares, indicating continued alignment with shareholder interests.

Negatives

• A reduction in the direct common stock ownership by 5,928 shares, even if for tax purposes.

Risks

• The vesting of Restricted Stock Units (RSUs) and stock options is contingent upon the reporting person's continued employment through the specified vesting dates.
• The conversion terms of the Series A-1 Preferred Stock are subject to adjustment provisions, including certain anti-dilution provisions, and a minimum conversion price, which could affect the number of common shares received upon conversion.

Future Outlook

The future outlook includes the scheduled vesting of 230,000 Restricted Stock Units (RSUs) through January 1, 2026, and the continued vesting of 340,000 stock options with expiration dates extending to December 15, 2029. Additionally, the Series A-1 Preferred Stock is subject to potential mandatory conversion by the issuer until October 4, 2026, and potential redemption by the issuer from October 4, 2027.

Management Comments

• The reporting person elected to satisfy his tax withholding obligations in connection with the vesting of restricted stock units by directing the issuer to withhold shares otherwise issuable upon vesting of the grants.

Industry Context

This SEC Form 4 filing is a standard disclosure of an insider transaction, specifically a change in beneficial ownership due to executive compensation. Such filings are common across all publicly traded companies and provide transparency into executive stock holdings, but do not inherently reflect broader industry trends or competitive dynamics.

Stakeholder Impact

• Shareholders: The filing provides transparency regarding the President's beneficial ownership and compensation structure, which can contribute to investor confidence. The nature of the transaction (tax withholding) is a routine event and generally not perceived as a negative signal.

Next Steps

• Continued vesting of 180,000 Restricted Stock Units (RSUs) in equal quarterly installments of 20,000 beginning September 30, 2025.
• Vesting of 50,000 Restricted Stock Units (RSUs) on January 1, 2026.
• Continued vesting of 240,000 stock options in equal quarterly installments of 20,000 beginning December 31, 2024.
• Continued vesting of 100,000 stock options in two equal annual installments beginning January 1, 2025.
• Potential mandatory conversion of Series A-1 Preferred Stock by the issuer upon certain specified events until October 4, 2026.
• Potential redemption of Series A-1 Preferred Stock by the issuer for cash upon certain events or at any time beginning October 4, 2027.

Key Dates

Keywords

SKYX Platforms Corp, SKYX, SEC Form 4, Beneficial Ownership, Insider Transaction, Restricted Stock Units, RSUs, Stock Options, Preferred Stock, Executive Compensation, Tax Withholding